Hoff v. Certainteed Corp. ( 2021 )


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  •                                        129
    Argued and submitted June 9, 2020, affirmed December 8, 2021
    Patricia M. HOFF,
    Individually and as Personal Representative
    of the Estate of David P. Hoff,
    Plaintiff-Respondent,
    v.
    CERTAINTEED CORPORATION, et al.,
    Defendants,
    and
    KAISER GYPSUM COMPANY, INC.,
    Defendant-Appellant.
    Multnomah County Circuit Court
    15CV23996; A162891
    503 P3d 457
    This is a products liability and negligence action that involves exposure to
    a product containing asbestos. The original plaintiffs, a husband and wife, now
    a single plaintiff on behalf of herself and the estate of husband, brought claims
    against multiple defendants, alleging that their products had caused husband’s
    mesothelioma and resulting damages to both plaintiffs. After a jury trial, the
    jury rendered its verdict against the only remaining defendant, and found that
    defendant was strictly liable, that its negligence was a substantial factor in caus-
    ing the mesothelioma, and that defendant’s percentage of fault was 35 percent.
    On appeal, defendant argues that the trial court erred by denying its motion for
    directed verdict, granting plaintiffs’ post-trial motion to amend their complaint
    to seek a greater amount in noneconomic damages, and entering a judgment
    against defendant that, contrary to ORCP 67 C, awarded noneconomic damages
    for the loss-of-consortium claim in excess of the damages that had been alleged
    in one of two parts of the complaint. Held: The trial court did not err by denying
    defendant’s motion for directed verdict. Because plaintiffs did not file a second
    amended complaint, the trial court’s ruling to allow plaintiffs’ post-trial motion
    to amend was harmless, even if assumed to be error. And, the trial court did not
    err by entering judgment on the consortium claim in the net sum awarded.
    Affirmed.
    Judith H. Matarazzo, Judge.
    J. Aaron Landau, argued the cause for appellant. Also
    on the briefs were Susan D. Marmaduke and Harrang Long
    Gary Rudnick P. C.
    James S. Coon argued the cause for respondent. Also on
    the brief was Thomas, Coon, Newton & Frost.
    130                             Hoff v. Certainteed Corp.
    Before DeVore, Presiding Judge, and DeHoog, Judge, and
    Mooney, Judge.
    DeVORE, P. J.
    Affirmed.
    Cite as 
    316 Or App 129
     (2021)                                                  131
    DeVORE, P. J.,
    Defendant Kaiser Gypsum Company appeals from
    a judgment for plaintiffs.1 David Hoff (Hoff), now deceased,
    and Patricia Hoff brought this product liability and negli-
    gence action arising from Hoff’s alleged exposure to asbes-
    tos, which resulted in mesothelioma, an asbestos-related
    disease. They alleged that Hoff suffered the disease as a
    result of exposure to drywall joint compound manufactured
    and sold by defendant.2
    Defendant raises three assignments of error. Defen-
    dant contends that the trial court erred by (1) denying its
    motion for directed verdict, (2) granting plaintiffs’ post-trial
    motion to amend their complaint to seek a greater amount in
    noneconomic damages, and (3) entering a judgment against
    defendant that, contrary to ORCP 67 C, awarded noneco-
    nomic damages for the loss-of-consortium claim in excess of
    the damages that had been alleged in one of two parts of the
    complaint.
    We conclude that (1) denial of defendant’s motion
    for directed verdict was proper because there was sufficient
    evidence from which a jury could find that Hoff was exposed
    to defendant’s product in the course of his work; (2) any
    arguable error in allowing plaintiffs’ motion to amend their
    complaint after trial is harmless because plaintiffs did not
    actually file a second amended complaint; and (3) the judg-
    ment complied with ORCP 67 C because, notwithstanding
    inconsistent figures on consortium damages in the opera-
    tive complaint—an inconsistency that defendant repeatedly
    failed to seek to clarify—the judgment entered was not in
    excess of the amount that was sought in the prayer. Making
    those conclusions, we affirm.
    1
    This action was originally brought by two plaintiffs—husband and wife—
    David Hoff and Patricia Hoff. David Hoff died after the jury returned its ver-
    dict and before the trial court entered the judgment. The trial court substituted
    Patricia Hoff as personal representative of his estate in his place. Patricia Hoff is
    the only plaintiff in this appeal. When we refer to the proceedings below, we use
    “plaintiffs.”
    2
    There were 10 defendants named in the lawsuit, the case went to trial
    against three named defendants, and two of those defendants settled prior to
    jury deliberations. Kaiser Gypsum Company, Inc. is the only defendant appear-
    ing on appeal and is the party to whom we refer as “defendant.”
    132                                       Hoff v. Certainteed Corp.
    “We review the denial of a motion for directed ver-
    dict for any evidence to support the verdict in favor of the
    nonmoving party.” Lyons v. Beeman, 
    311 Or App 560
    , 563,
    494 P3d 358, rev den, 
    368 Or 513
     (2021) (internal quota-
    tion marks omitted). We view the evidence in the light
    most favorable to plaintiffs, “and, if the evidence supports
    more than one conclusion, we leave it for the jury to decide.”
    Id. at 564. Unless there is no evidence from which the jury
    could have found the facts necessary to support plaintiffs’
    claim, we will not disturb the jury’s verdict. Id.; Or Const,
    Art VII (Amended), § 3. We state the facts according to that
    standard.
    FACTS
    Hoff worked for R.A. Gray Company (Gray), a gen-
    eral contractor, from late 1973 to sometime in 1980 and then
    again from the early 1990s until he retired in 2013. Hoff was
    diagnosed with mesothelioma in August 2015. In September
    2015, Hoff brought claims against 10 defendants, including
    Kaiser Gypsum Company, that he alleged had manufac-
    tured or distributed asbestos-containing products to which
    he was exposed and that he alleged caused his disease.
    Hoff alleged that the asbestos-containing drywall products
    caused cancer when inhaled and that asbestos fibers were
    released “into the breathing zone of individuals working
    with or near the product, particularly during routine and
    anticipated use of the product.” Hoff’s wife brought claims
    against the same defendants for loss of consortium arising
    out of her husband’s injury.
    Hoff was a carpenter whose primary skills were
    framing and finish carpentry, jobs that were commonly done
    while drywall taping and finishing were underway on Gray
    job sites. He also frequently helped to sweep up the dust cre-
    ated by the sanding of drywall joint compound at job sites.
    Defendant’s drywall joint compound contained asbestos for
    approximately two of the years that Hoff worked for Gray—
    from when he began working there in late 1973 until late
    1975.3
    3
    Defendant’s joint compound contained asbestos until November 24, 1975,
    when defendant began to use a new formula that did not contain asbestos.
    Cite as 
    316 Or App 129
     (2021)                                              133
    During the trial, plaintiffs provided testimony by
    two witnesses, Nemeth and Croft, who worked for Gray
    doing drywall finishing. Each of their tenures at Gray over-
    lapped with Hoff’s for some period of time. Nemeth, who
    worked at Gray for a year or less in the early 1970s as a
    drywall finisher, testified about the drywall finishing pro-
    cess and explained that joint compound, which he referred
    to as “mud,” and tape are used to cover the joints of dry-
    wall sheets (sheetrock) that are hung.4 Several coats of mud
    are applied, and each coat is sanded so that the walls and
    ceilings become smooth. The sanding process is extremely
    dusty, and the room gets foggy because the dust floats in
    the air. After a room is sanded, it “would be very—very
    foggy with dust. Foggy with dust, dust on the floor, dust
    everywhere.” During the time he worked at Gray, Nemeth
    recalled using four brands of joint compound that he said
    were “commonplace” at Gray. Although he could not iden-
    tify specific jobsites where he used specific products, one
    was defendant’s product. When asked to explain his usage
    of the word “commonplace,” Nemeth said, “They usually use,
    generally, certain brands. While they used many different
    brands, they generally used certain brands, and these—
    those are the brands I remember using.” He also testified
    that “[t]hey would be on most every job. * * * [T]he reason I
    remember these brands is because that’s what they mostly
    used.”
    Nemeth testified that he ran across Hoff a few times
    on the different jobs he worked on for Gray. Although he
    could not specify the names of the projects where he recalled
    seeing Hoff, Nemeth recalled two commercial jobs—office
    buildings—located in Tigard and Beaverton where he saw
    Hoff on site. One particular time, at an office building in
    Beaverton, Nemeth was at the site to do some drywall
    patching, and he spoke with Hoff at length. Hoff had been
    sweeping in a hallway at the time, as superintendents some-
    times did toward the end of a job.
    4
    On direct examination, Nemeth estimated that he worked at Gray from
    early or mid-1972 to early or mid-1973. During cross-examination, he was
    reminded that at an earlier deposition he had testified that he worked there from
    1973 to 1974; he acknowledged that he did not remember the exact dates. In
    either case, his work at Gray was during the time when defendant’s joint com-
    pound contained asbestos.
    134                                           Hoff v. Certainteed Corp.
    Croft worked at Gray in the 1970s for approximately
    seven years.5 He and two other employees had the primary
    responsibility for installing the drywall and finishing it on
    the various job sites. His duties involved sanding drywall
    joint compound, and he explained that there was not any
    way to sand without creating dust. Sanding was exhausting
    and messy work, and sometimes he would have to sand for
    four hours at a time. Similar to Nemeth’s testimony, Croft
    explained that dust filled the atmosphere, and the people
    in the room would get covered in dust. In addition, the dust
    would be transported throughout the building by the HVAC
    system, and it was not confined to the room where sanding
    was taking place.
    Some of the jobs Croft worked on were quite large—
    three or four-story buildings with as much as 10,000 feet
    per floor—and there would be a lot of trades working on the
    buildings at the same time. Croft worked on different jobs
    with Hoff as a peer and as his supervisor. He testified that
    he recalls projects where he was on site doing his job when
    Hoff was also present at the worksite. Croft named some
    specific projects where he recalls having seen Hoff, and he
    also stated that he “probably was in contact with [Hoff] on,
    who knows, it could have been 20 or 30 jobs. It might even
    be more, I don’t know; but we were—we were on a lot of com-
    mon work sites.” He recalled working as the drywall fin-
    isher, which included sanding, at some of the same projects
    that Hoff also identified as projects at which Hoff worked in
    the 1973 to 1975 time period.
    Croft named four major brands of joint compound
    that Gray used while Croft worked for Gray, one of which
    was defendant’s product. Croft could not place a particular
    joint compound brand at a specific job site but stated that
    they were used “very often” on Gray’s projects. He said that
    they used “huge quantities” of those four products:
    “[T]hey would deliver the products on a pallet, and there’d
    be, oh, probably 20 or 30 boxes per pallet; and they’d deliver
    several pallets, and sometimes we’d go through a few more
    5
    Croft was unsure of the exact years—he originally testified that he thought
    it was 1970 to 1977, but later agreed that it could have been 1972 or 1973 to 1978
    or 1979.
    Cite as 
    316 Or App 129
     (2021)                                           135
    pallets. So we used hundreds of boxes and buckets of the
    materials.
    “* * * * *
    “* * * [F]or [each] job, probably, depending on the size of the
    job, from a little job, maybe 20 boxes or buckets; and for a
    bigger job, it could be hundreds.”
    When asked whether those four products were used on the
    same projects where he worked with Hoff, he said “yes” and
    explained that they “used those products on a regular basis;
    [he] was on numerous jobs with David Hoff; and, to draw a
    logical conclusion, those products were used by [him] on jobs
    where [Hoff] was present * * * on a regular basis.” Croft also
    explained that the other two drywallers that he worked with
    used the same products; he knew this because they would
    share the buckets of product while working on a project.
    Hoff’s testimony was that, after his cancer diag-
    nosis, he tried to figure out whether he had had exposure
    to asbestos during his career.6 He determined that drywall
    compounds were “probably the predominant ones.” He tes-
    tified about his work history at Gray, including the projects
    he had worked on, what his job duties as a carpenter had
    been, and whether drywalling had taken place at a particu-
    lar project. He identified five work projects where he worked
    before 1976 that also involved drywall installation and fin-
    ishing.7 One of those projects was a commercial complex that
    included an office building and was approximately 30,000 to
    35,000 square feet in size. Another project was a house that
    was approximately 4,500 square feet. And another was a
    commercial building that was 15,000 to 18,000 square feet.
    Hoff explained that it was “very common” to be
    doing his work as a carpenter at the same time that other
    people were doing drywall application and finishing on the
    same project. He said that he “would get [to a project] when
    they would be doing more of the siding or the finish end of
    6
    Hoff’s testimony had been taken at an earlier deposition, which was then
    presented to the jury at trial.
    7
    We note that, at oral argument, the parties agreed that the evidence at
    trial demonstrated that there were three sites where Hoff worked and where
    Gray’s own employees, rather than subcontractors, did the drywall work.
    136                                           Hoff v. Certainteed Corp.
    the projects where the drywall was going on” and that he
    was “often present for the taping and the finishing * * * pro-
    cess.” They were not on top of each other but were in the
    building at the same time; it was a way of managing the
    project to do more than one phase at a time. He explained,
    similarly to other witnesses, that drywall sanding is a dusty
    process and that part of his job to help keep a project moving
    along—even after he became a superintendent—was to use
    a broom to clean up the dust that had settled on the floors.
    Hoff also testified that defendant’s product was one of the
    joint compounds that Gray used in the 1970s.
    MOTION FOR DIRECTED VERDICT
    At the close of all the evidence, defendant moved
    for directed verdict under ORCP 60 on the issue of expo-
    sure to asbestos, contending that plaintiffs had failed to
    provide evidence that Hoff had been exposed to defendant’s
    asbestos-containing joint compound at the sites where he
    had worked.8 In defendant’s view, there was no basis for
    the jury to conclude without speculation that Hoff had been
    exposed to its product. Plaintiffs argued that the evidence
    was sufficient for the jury to make reasonable inferences to
    find that defendant’s joint compound had been used on one
    of the job sites where Hoff had worked with Croft or Nemeth
    and that Hoff had therefore been exposed to it. The trial
    court denied defendant’s motion.
    In its first assignment of error, defendant contends
    that the trial court erred in denying its motion for directed
    verdict. The parties agree that it was plaintiffs’ burden
    to show that it was more probable than not that Hoff was
    exposed to defendant’s joint compound during the period
    when it contained asbestos. Defendant reprises its conten-
    tion that there was no evidence at trial from which a rea-
    sonable juror could find that Hoff had been exposed to defen-
    dant’s asbestos-containing joint compound. Defendant’s
    contention is based on a two-part argument that plaintiffs
    were required to provide evidence of exposure to defendant’s
    product at a particular location and that plaintiffs did not
    8
    Defendant had informed the trial court of its intention to move for directed
    verdict earlier in the case; as a matter of scheduling, the motion was argued to
    the trial court while the jury was deliberating.
    Cite as 
    316 Or App 129
     (2021)                               137
    provide evidence that Gray had used defendant’s asbestos-
    containing product at any particular work site when Hoff
    had been present.
    Plaintiff responds that, construing the evidence and
    all reasonable inferences in her favor, there was evidence in
    the record from which a reasonable juror could have found
    it more likely than not that defendant’s product had been
    present on at least one of the sites where Hoff worked before
    1976. See Trees v. Ordonez, 
    354 Or 197
    , 218-19, 311 P3d 848
    (2013) (“[W]e review to determine whether there was any
    evidence from which a reasonable jury could find that it was
    more probable than not that defendant’s alleged negligence
    * * * caused plaintiff’s injury.”). Plaintiff argues that, con-
    sidering the number of job sites where Hoff had potential
    exposure to defendant’s joint compound and the number of
    brands of joint compounds that Gray commonly or regularly
    used, it was permissible for the jury to infer exposure.
    Defendant relies on Purcell v. Asbestos Corp., Ltd.,
    
    153 Or App 415
    , 
    959 P2d 89
    , adh’d to as modified on recons,
    
    155 Or App 1
    , 
    963 P2d 729
     (1998), in support of its conten-
    tion that plaintiffs were required to prove that Hoff had been
    exposed to its product at a particular location. In Purcell, the
    plaintiff was exposed to asbestos during his 35-year employ-
    ment with several employers at numerous job sites. He had
    worked as an electrician and had been exposed to airborne
    asbestos fibers from several types of asbestos products from
    multiple sources at more than 100 sites. He brought a law-
    suit against 18 defendants. Id. at 418-19.
    On appeal, two of the defendants challenged the
    trial court’s denial of their motions for directed verdict.
    They argued, in part, that the plaintiff had “failed to offer
    adequate proof of his exposure to their asbestos-containing
    products, as distinct from products of other manufacturers,
    to permit the inference that their products caused his dis-
    ease” and that the “plaintiff failed to provide sufficient evi-
    dence to link their products to the work sites at which he
    sought to show that he was exposed to airborne asbestos
    fibers.” Id. at 420, 424. We explained that the plaintiff’s “evi-
    dence was directed at showing that one or both of the defen-
    dants’ products were located at various sites at the times
    138                                        Hoff v. Certainteed Corp.
    that plaintiff worked there.” Id. at 424 (emphasis added). We
    concluded that,
    “[a]lthough the parties make detailed site-by-site argu-
    ments about the proof of plaintiff’s exposures to defendants’
    products, it is unnecessary for us to engage in similar detail
    in our discussion, given the legal standard that we have
    held applies to the question. Plaintiff’s evidence sufficed to
    allow the jury to infer that [the plaintiff] was exposed to
    asbestos-containing products of both defendants, singly or
    in combination, at each of the work locations that the trial
    court allowed the jury to consider.”
    Id. We held that the trial court did not err in denying the
    defendants’ motions for directed verdict. Id. at 426.
    Defendant argues that Purcell stands for its prop-
    osition that plaintiffs were required to prove that Hoff was
    exposed to its product at a particular job site. However, we do
    not agree that the test is as stringent as defendant suggests.
    In Purcell, the evidence happened to have been sufficient
    for the jury to infer that the plaintiff had been exposed at
    particular sites, but we did not hold that all plaintiffs must
    prove their case in that way. We observed, “[O]ur review is
    limited to whether the evidence was adequate to allow the
    jury to find what it did.” Id. at 425. The key was not that the
    evidence showed exposure at each work site but simply that
    the evidence showed exposure to the defendants’ products.
    In this case, plaintiffs were required to prove that
    it was more likely than not that Hoff had been exposed to
    defendant’s asbestos-containing product at one or more
    work sites. Here, there was evidence that Croft, a drywall
    worker, saw Hoff on 20 to 30 job sites. Prior to 1976—during
    a two-year time period when defendant’s product contained
    asbestos—Hoff identified five job sites at which he was
    present and where drywall work was being done. Three
    witnesses—Nemeth, Croft, and Hoff—testified that defen-
    dant’s product was used in the 1970s by drywallers on Gray’s
    job sites. Nemeth and Croft testified that defendant’s product
    was one of four joint compounds that was commonly used.9
    9
    They each named four brands, not all of which were the same ones named
    by the other; considered together, there were six brands that were commonly
    used.
    Cite as 
    316 Or App 129
     (2021)                                   139
    Nemeth was employed by Gray only during the timeframe
    when defendant’s product contained asbestos, and Nemeth
    testified that defendant’s product, among others, was used
    on Gray’s job sites. Croft explained that, depending on the
    size of the job, hundreds of packages of joint compound could
    be used at a worksite. Both witnesses who performed dry-
    wall work testified that they had encountered Hoff on a job
    site more than once.
    We repeat what our question is and what it is not.
    As in Purcell, our question is whether the evidence permits
    a reasonable inference that, more likely than not, Hoff was
    exposed at some time to defendant’s asbestos-containing
    product. Unlike Purcell, we are not asked to consider whether
    there was sufficient evidence to support medical causation.
    In regard to circumstantial evidence and reason-
    able inferences, we have stated:
    “Whether particular circumstantial evidence is suffi-
    cient to support a particular inference * * * is a legal ques-
    tion for a court to decide. There is a difference between
    inferences that may be drawn from circumstantial evi-
    dence and mere speculation. Reasonable inferences are
    permissible; speculation and guesswork are not.”
    State v. Bivins, 
    191 Or App 460
    , 467, 83 P3d 379 (2004) (cita-
    tions and internal quotation marks omitted). We also stated
    that we agreed with a description by federal courts that
    “[t]he line between a reasonable inference that may permis-
    sibly be drawn by a jury from basic facts in evidence and an
    impermissible speculation is not drawn by judicial idiosyn-
    crasies. The line is drawn by the laws of logic. If there is an
    experience of logical probability that an ultimate fact will
    follow a stated narrative or historical fact, then the jury is
    given the opportunity to draw a conclusion because there is
    a reasonable probability that the conclusion flows from the
    proven facts.”
    
    Id.
     (internal quotation marks omitted).
    Given our standard of review, we conclude that
    the evidence was sufficient for the jury to infer that over
    a two-year period, Hoff would have been exposed to defen-
    dant’s product that was commonly used on Gray work sites
    140                                 Hoff v. Certainteed Corp.
    for drywall work. Defendant’s product contained asbestos
    during that time. Defendant’s product, among others, was
    on Gray’s job sites. Hoff worked at Gray’s job sites. A reason-
    able juror could find that defendant’s product was used on
    at least one of the work sites where drywall work occurred
    in Hoff’s presence or where drywall dust was created that
    Hoff had exposure to—such as during sweeping and clean-
    ing up the dust. The common use of defendant’s joint com-
    pounds, their recurring opportunity for use at multiple job
    sites, the volume of product that was used at larger jobs, and
    the confirmation of the product’s use by multiple witnesses,
    collectively, makes reasonable the inference that they were
    used when Hoff worked. The record, viewed in the light most
    favorable to plaintiff, provides sufficient evidence for a find-
    ing that Hoff was exposed to defendant’s product. Therefore,
    we affirm the trial court’s denial of defendant’s motion for
    directed verdict.
    PLAINTIFFS’ MOTION TO AMEND
    Defendant’s second and third assignments of error
    involve uncertainty about the pleading of damages for loss
    of consortium. An account of that uncertainty relates to
    both assignments.
    Plaintiffs’ initial complaint was filed in September
    2015. The trial court permitted plaintiffs to amend their
    complaint to add punitive damages with an amended com-
    plaint in March 2016. In the “damages” allegations in the
    body of the amended complaint, plaintiffs allege noneco-
    nomic damages for Hoff himself “in the amount of no less
    than $5,000,000”; medical expenses for Hoff “in the amount
    of no less than 250,000”; and loss-of-consortium damages
    “in the amount of $1,000,000” for Hoff’s wife, Patricia Hoff.
    Following those allegations, the amended complaint con-
    tains a prayer for judgment against defendants that, in
    part, repeats the damage amounts alleged in the body of
    the complaint for Hoff, but seeks $2,000,000 for Patricia
    Hoff’s loss-of-consortium claim. Defendant did not file a
    motion to prompt plaintiffs to make more definite and cer-
    tain which of the two sums was sought for her consortium
    claim. See ORCP 21 D (“[T]he court may require the plead-
    ing to be made definite and certain by amendment when
    Cite as 
    316 Or App 129
     (2021)                              141
    the allegations of a pleading are so indefinite or uncertain
    that the precise nature of the charge * * * is not apparent.”)
    Instead, defendant simply answered. Defendant’s answer
    generally denied that its products caused or contributed to
    plaintiffs’ alleged damages.
    At trial, defendant submitted a proposed jury instruc-
    tion regarding the loss-of-consortium claim; it included a
    sentence stating, “The amount of noneconomic damages for
    loss of consortium may not exceed the sum of $1,000,000.”
    Without objection, the trial court did not give that instruc-
    tion to the jury. During colloquy with counsel to discuss the
    instruction to be given for noneconomic damages regard-
    ing Hoff himself, counsel for one of the other codefendants
    (still in the case at the time) and counsel for plaintiffs pro-
    posed that the last sentence of the uniform jury instruction—
    which provides for a limit to the damage amount—be
    removed. In response, the trial court stated, “All right. If
    nobody else cares I don’t care.” The parties next discussed
    the instruction to be given regarding loss of consortium. The
    trial court stated, “I don’t have a preference one way or the
    other whether you keep in the ‘may not exceed’; but you didn’t
    on the other, so do you want that struck as well?” Plaintiffs’
    counsel responded, “Just take it out and be consistent, Your
    Honor.” Defendant did not object. As a consequence, the jury
    was not instructed that there was any limit on the amount of
    damages they were to decide on. Defendant has not assigned
    error to the trial court’s failure to have given its instruction
    limiting the consortium claim to $1,000,000.
    The jury considered a special verdict form when
    only one defendant remained in the case after the conclu-
    sion of the evidence. Others had settled. The jury deter-
    mined that defendant Kaiser Gypsum was strictly liable,
    that its negligence was a substantial factor in causing Hoff’s
    mesothelioma, and that defendant’s percentage of fault rel-
    ative to other, settled, former parties was 35 percent. The
    jury’s verdict found losses of $750,000 for medical expenses,
    $4,000,000 for Hoff’s noneconomic damages, and $4,000,000
    for Patricia Hoff’s noneconomic damages. Defendant did not
    object to the amount of the verdict as exceeding the dam-
    ages alleged in the pleadings or otherwise claim that there
    142                                       Hoff v. Certainteed Corp.
    was any other irregularity in the proceedings involving the
    verdict.
    Both parties filed post-trial motions. Plaintiffs filed
    a post-trial motion for leave to amend the complaint under
    ORCP 23 B to conform with the evidence adduced at trial.
    Specifically, plaintiffs sought to
    “change the claimed damages for economic loss from med-
    ical bills from not less than $250,000 to $750,000 * * *; the
    claimed loss of consortium for Mrs. Hoff from damages
    * * * ‘in the amount of $1,000,000’ to ‘in the amount of
    $4,000,000;’ [and] the prayer for relief for Mrs. Hoff’s con-
    sortium claim from ‘$2,000,000’ to ‘$4,000,000.’ ”
    Plaintiffs noted that the amended complaint had contained
    a drafting error in that it had alleged $1,000,000 of noneco-
    nomic damages for Patricia Hoff but requested $2,000,000
    in the prayer at the conclusion of the complaint.
    Defendant filed a post-trial motion to reduce the ver-
    dict to conform to the pleadings and the evidence. Defendant
    asked the trial court to reduce the medical expense award to
    reflect the amount of medical expenses that was supported
    by evidence plaintiffs had presented to the jury. Defendant
    also asked the trial court to reduce the verdict for Patricia
    Hoff’s noneconomic damages to $1,000,000—the amount
    alleged in the main body of plaintiffs’ amended complaint.
    Defendant did not file a motion, then or later, for relief from
    judgment under ORCP 71.10
    The net result of the trial court’s rulings on the
    motions was that the trial court granted defendant’s motion
    to limit economic damages, but not the consortium dam-
    ages, while granting plaintiffs’ motion to amend as to the
    consortium claim. Plaintiffs’ counsel noted that the new
    complaint, yet to be filed, would become the operative com-
    plaint, and the court agreed. Plaintiffs, however, did not
    actually file an amended complaint that reflected the per-
    mitted amendments.
    The trial court subsequently entered a general
    judgment and money award. That judgment reflects that, at
    10
    In its opening brief, defendant explains that ORCP 71 B did not apply
    under the circumstances.
    Cite as 
    316 Or App 129
     (2021)                             143
    a post-trial hearing the trial court had reduced the medical-
    expense award. The judgment states that defendant’s
    fault of 35 percent, after the verdict, results in defendant’s
    total liability for $2,919,473.50. That total is comprised of
    $119,473.50 for medical expenses, $1,400,000 in noneco-
    nomic damages for Hoff, and $1,400,000 in noneconomic
    damages for Patricia Hoff.
    In its second assignment, defendant asserts that
    the trial court erred in granting plaintiffs’ post-trial motion
    to amend their complaint by increasing the amount of loss
    of consortium damages. In response, plaintiff argues that,
    if the trial court so erred, that error was harmless because
    they never filed a second amended complaint, leaving the
    first amended complaint in place as the operative complaint.
    Defendant agrees that the first amended complaint is the
    operative complaint, but argues that the trial court’s grant-
    ing of the motion was not harmless because the court pro-
    ceeded as though the second amended complaint had been
    filed and permitted an award of $1,400,000 in loss of con-
    sortium damages (35 percent of $4,000,000). We agree with
    plaintiff that any alleged error in granting the motion to
    amend was or would be harmless. The second amended com-
    plaint was not filed. The first amended complaint remained
    the operative complaint.
    Nevertheless, defendant insists that it was harmed
    because an award was entered against it in conformance
    with the proposed amended pleading. However, that argu-
    ment is misdirected. That claimed harm is not the result of
    permission to file a second amended complaint, which was
    never filed. Rather, that claimed harm is a question about
    the consistency of the complaint and judgment. The chal-
    lenge to that judgment is defendant’s third assignment of
    error, to which we now turn.
    ENTRY OF JUDGMENT
    For its third assignment, defendant asserts that
    the trial court erred in entering a judgment against it that
    awarded noneconomic damages on the claim for loss of con-
    sortium in excess of the damages that, earlier in the body
    of the complaint, plaintiffs alleged was suffered. In defen-
    dant’s view, that initial allegation asserted that Patricia
    144                                 Hoff v. Certainteed Corp.
    Hoff sustained damage “in the amount of $1,000,000” for
    loss of consortium, and defendant relied on that allegation
    as the maximum liability for her claim. The jury’s verdict
    determined that Mrs. Hoff suffered $4,000,000 as noneco-
    nomic damages and, after attribution of defendant’s fault
    of 35 percent, the judgment rendered defendant liable for
    $1,400,000 in her noneconomic damages. Defendant con-
    tends that the judgment did not comply with ORCP 67 C
    and the Fourteenth Amendment to the United States
    Constitution. Defendant argues that entry of the judgment
    was error because defendant was not given notice that it
    could be exposed to such damages. Defendant asks that we
    modify the judgment.
    In response, plaintiff asserts that, because the com-
    plaint’s prayer requested noneconomic damages for Patricia
    Hoff in the amount of $2,000,000, defendant had notice that
    it could be exposed to damages up to that amount. Plaintiff
    stresses that ORCP 67 C concerns “the amount prayed for.”
    As a result, plaintiff concludes, the trial court did not err in
    entering a judgment that contained an award for $1,400,000,
    which was still less than “the amount prayed for.”
    We are not persuaded by plaintiff’s arguments
    that defendant invited error or that, because it failed to
    preserve an objection to the verdict, defendant is precluded
    from asserting its argument about entry of judgment. We
    conclude, however, that the remaining basis for appeal is
    narrow. That basis is only defendant’s challenge to the entry
    of judgment founded on ORCP 67 C, and, ultimately, that
    challenge cannot succeed.
    We begin by observing what defendant has not
    claimed as error. Defendant says in its reply brief that
    “defendant’s appeal does not concern instructional error.”
    Defendant continues, “[I]rrespective of whether the verdict
    was contrary to the law, this appeal challenges the judgment
    under Rule 67.” (Emphasis in original.) In effect, defendant
    makes direct and indirect concessions that are appropriate.
    Defendant did not object to, nor assign error to, the failure
    to give its instruction limiting damages. See ORCP 59 H
    (requirement for exception to jury instructions). Defendant
    did not object to receipt of the verdict as employing a raw
    Cite as 
    316 Or App 129
     (2021)                                145
    number for Patricia Hoff’s noneconomic damages in excess
    of her allegation in the body of the complaint. See Estate of
    Maria Refugio Ibarra v. Lilly, 
    245 Or App 294
    , 295-96, 263
    P3d 1053 (2011) (failure to object to the verdict before the jury
    was discharged waived the objection later raised by motion)
    (citing Building Structures, Inc. v. Young, 
    328 Or 100
    , 108,
    
    968 P2d 1287
     (1998))). Defendant did not file a motion under
    ORCP 71 to set aside the judgment. Finally, defendant has
    not explicitly or appropriately assigned error to the denial
    of its post-trial motion to reduce the verdict regarding the
    loss-of-consortium damages. See ORAP 5.45 (requirements
    for an assignment of error). Therefore, we do not understand
    defendant to argue that the trial court erred by not instruct-
    ing the jury that it needed to limit the amount of damages
    it awarded; we do not understand defendant to argue that
    the court erred in accepting the jury’s verdict with a prelim-
    inary consortium loss (i.e., undivided among defendant and
    settled parties) that was higher than the prayer itself, and
    we do not understand defendant to challenge the denial of
    any post-trial motion. Defendant challenges something else.
    Defendant challenges the entry of the judgment. We
    consider but reject that narrow challenge under the terms of
    its own rationale. As its source of authority, defendant relies
    on ORCP 67 C, which states:
    “Every judgment shall grant the relief to which the
    party in whose favor it is rendered is entitled. A judgment
    for relief different in kind from or exceeding the amount
    prayed for in the pleadings may not be rendered unless rea-
    sonable notice and opportunity to be heard are given to any
    party against whom the judgment is to be entered.”
    (Emphases added.) Although defendant contends that the
    Fourteenth Amendment to the United States Constitution
    protects a defendant from being deprived of property with-
    out first being provided reasonable notice and an opportu-
    nity to be heard, it does not develop a separate constitutional
    argument in that regard and relies on ORCP 67 as the basis
    for its argument. We do not consider defendant’s undevel-
    oped constitutional argument. See PGE v. Ebasco Services,
    Inc., 
    353 Or 849
    , 306 P3d 628 (2013) (where the due pro-
    cess argument was developed and violation of ORCP 67 C
    146                                 Hoff v. Certainteed Corp.
    occurred, no constitutional violation occurred because the
    defect in prayer was apparent on the face of the complaint
    and defendant neglected multiple opportunities to challenge
    the defect). Instead, we consider defendant’s procedural
    challenge under ORCP 67.
    ORCP 67 C provides that a judgment may not be
    rendered for relief exceeding the amount “prayed for in the
    pleadings” unless reasonable notice and opportunity to be
    heard are given. Our cases show that statements in the
    prayer suffice, even when the earlier text of the complaint
    may seem lacking. We have repeatedly held that the prayer
    in a complaint provides notice to the opposing party as to
    the relief being requested. In Bruce v. Cascade Collections,
    Inc., 
    199 Or App 59
    , 110 P3d 587, rev den, 
    339 Or 66
     (2005),
    we considered the issue of a trial court’s denial of an award
    to the plaintiff of attorney fees based on its conclusion that
    the plaintiff had failed to adequately plead an entitlement
    to fees. The prayer of the plaintiff’s first amended complaint
    sought judgment against the defendant for various damages
    “together with her costs and expenses of this action and
    reasonable attorney fees.” Id. at 61 (emphasis omitted). We
    stated that “it makes no difference * * * whether the defen-
    dant was fairly alerted by the allegations of the first claim
    for relief or by the content of the prayer describing the relief
    sought for that claim,” and we remanded for the trial court to
    reconsider the plaintiff’s request. Id. at 66, 68 (internal quo-
    tation marks omitted). See Little Whale Cove Homeowners
    Assoc. v. Harmon, 
    162 Or App 332
    , 342, 
    986 P2d 616
     (1999)
    (statements in the defendant’s prayer were sufficient to put
    plaintiff on notice that they intended to seek attorney fees);
    cf. Lewis v. Dept. of Rev., 
    294 Or 139
    , 143, 
    653 P2d 1265
    (1982) (observing that, in other cases, the plaintiffs’ express
    prayers for attorney fees had “put the defendant on notice
    that should plaintiff prevail defendant might be liable for an
    award of attorney fees”).
    On the other hand, we do enforce ORCP 67 C, hold-
    ing that a default judgment may not be entered to the extent
    that it exceeds the amount sought in the prayer for relief. See
    Montoya v. Housing Authority of Portland, 
    192 Or App 408
    ,
    416, 86 P3d 80 (2004) (determining a violation of ORCP 67 C
    and due process where the amount of economic damages
    Cite as 
    316 Or App 129
     (2021)                                            147
    exceeded the prayer); see also Kirresh v. Gill, 
    309 Or App 47
    , 66-67, 482 P3d 76 (2021) (determining violation of due
    process warranting relief under ORCP 67 C where forfeiture
    remedy had not been asserted in the operative complaint or
    adequately raised during the proceedings leading up to the
    judgment).
    The decision in PGE, 
    353 Or 849
    , is instructive.
    In the prayer of its breach of contract claim, PGE alleged
    that its liability insurance carriers were “liable to reim-
    burse [PGE] the settlement of the underlying lawsuit.”
    
    Id. at 851
    . It did not allege the dollar amount of damages
    that it sought. PGE obtained a default judgment against
    one of its carriers, Lexington, in the amount of $800,000.
    Lexington sought unsuccessfully to have that judgment set
    aside under ORCP 71 C. The matter was ultimately decided
    by the Supreme Court, which first considered ORCP 67 C,
    holding that because PGE’s complaint did not “seek any
    amount of damages,” the default judgment awarding dam-
    ages violated ORC 67 C. 
    Id. at 858
    .
    That did not mean, however, that the judgment
    violated the notice requirement of due process. 
    Id. at 860
    .
    The court observed that the pleading defect involving the
    amount of damages was apparent on the face of the com-
    plaint when Lexington was served with the complaint.
    
    Id. at 864
    . Although Lexington had been defaulted, the
    court observed that Lexington’s challenge to the pleading
    defect was something that Lexington could have sought to
    remedy in multiple ways before judgment, such as a motion
    to make more definite and certain under ORCP 21 D or a
    motion to dismiss for failure to state a claim under ORCP
    21 A(8). 
    Id. at 864-65
    . The court concluded that Lexington’s
    challenge came “too late.” 
    Id. at 865
    . The court did not set
    aside the judgment for $800,000.11
    In the case at hand, plaintiffs’ pleading defect is dif-
    ferent than that in the PGE decision, but defendant’s failure
    11
    The Supreme Court remanded the case to the Court of Appeals to deter-
    mine whether the amended complaint, which sought additional relief in the form
    of attorney fees but which was not served on Lexington, could be set aside and
    whether the trial court erred in denying the motion on the ground of excusable
    neglect. 
    Id. at 865-66
    .
    148                                           Hoff v. Certainteed Corp.
    here is similar to Lexington’s failure there. Accordingly, the
    PGE decision provides a contrast and a parallel. The con-
    trast is that, here, plaintiffs pleaded a sum certain in their
    prayer for noneconomic loss of consortium damages. Thus,
    the pleading problem is an inconsistency between an earlier
    alleged sum and a later prayer for sum, not a failure to pray
    for an amount of damages.
    Even so, defendant argues that the prayer of
    $2,000,000 did not give it notice of exposure to a judgment
    of $2,000,000—or even $1,400,000—when an earlier allega-
    tion in the complaint was $1,000,000. We recognize that, as
    a matter of notice, the difference between the two numbers
    in the amended complaint might have been puzzling or con-
    fusing. For that reason, the Supreme Court’s observation,
    when considering notice for purpose of due process, provides
    a useful parallel for our consideration of notice for purpose
    of ORCP 67 C.
    Defendant litigated the case from beginning to end,
    and defendant had several opportunities to verify or clar-
    ify its potential exposure.12 Most obviously, defendant, could
    have filed a motion under ORCP 21 D to request that the
    complaint be made more definite and certain in regard to
    damages, but defendant did not file such a motion. Before
    the jury deliberated, defendant could have pursued a limit
    on consortium damages in instructions to the jury; but,
    during the trial court’s discussion with counsel, defen-
    dant did not object to the removal of language that would
    have limited consortium damages. Finally, when the jury
    returned its verdict, defendant could have objected to
    the verdict, if defendant believed that the raw figure of
    $4,000,000 for consortium damages was impermissible or
    that the net result of the verdict exceeded the sum sought in
    judgment.13 However, defendant did not object to the verdict.
    12
    We also recognize that a defendant might calculate its litigation risk
    with a hope that damages may be divided with other defendants. Yet, defendant
    knew at the outset that other defendants might settle, leaving defendant the lone
    defendant at the time the jury was to begin deliberations, as happened here.
    There was no assurance of how fault might be divided, if at all, when the opera-
    tive complaint sought a judgment of $2,000,000 in consortium damages against
    defendant.
    13
    We are not asked to and we do not opine on the result of such objections.
    Cite as 
    316 Or App 129
     (2021)                             149
    In other words, the figures on consortium damages were an
    obvious inconsistency that defendant could readily see and
    had many chances to remedy but did not.
    That inconsistency does not mean that, in these cir-
    cumstances, the operative complaint did not provide notice
    as required by ORCP 67 C for entry of a judgment. To bor-
    row the terms of the rule, the amount that plaintiffs “prayed
    for” as a judgment against the lone defendant was greater
    than the amount that the judgment actually awarded. After
    defendant’s repeated failures to clarify or limit the consor-
    tium damages, the prayer afforded defendant notice that
    its net exposure for damages on the consortium claim was
    $2,000,000. The judgment’s entry with a consortium award
    for $1,400,000 does not violate ORCP 67 C.
    CONCLUSION
    In sum, the trial court did not err, on this record,
    by denying defendant’s motion for directed verdict. Because
    plaintiffs did not file a second amended complaint, the trial
    court’s ruling to allow plaintiffs’ post-trial motion to amend
    is harmless, even if assumed to be error. And, the trial court
    did not err by entering judgment on the consortium claim in
    the net sum awarded.
    Affirmed.
    

Document Info

Docket Number: A162891

Judges: DeVore

Filed Date: 12/8/2021

Precedential Status: Precedential

Modified Date: 10/10/2024